Recently, Cross-border payments giant MoneyGram announced its partnership with the Stellar Development Foundation, to enable instant money transfers using Circle’s USDC stablecoin.
"MoneyGram’s network, integrated with the Stellar blockchain and facilitated through Circle’s USD Coin (USDC), will enable cash funding and payout in local currency for consumers using USDC, as well as near-instant backend settlement capabilities." said the company.
Stellar, a decentralized network for financial products and services is both a cross-currency transaction system and a platform for digital asset issuance. The platform recently has grown to over 5 million accounts.
The integration allows digital wallets connected to the Stellar network to access MoneyGram's global retail platform, offering an overpass between digital assets and local currencies for consumers.
For consumers, the partnership aims to offer the ability to seamlessly convert USDC to cash, or cash to USDC. The integration will increase the utility and liquidity of digital assets; and will also enable more consumers to participate easily in the digital economy.
According to the announcement for the first time, settlement with MoneyGram will happen in near-real-time using Circle’s USDC, allowing an accelerated collection of funds and improved efficiency.
The integration is scheduled to go live in select markets this year, with further international launches planned in 2022. United Texas Bank will be serving as a settlement bank between Circle and MoneyGram.
"As crypto and digital currencies rise in prominence, we’re especially optimistic about the potential of stablecoins as a method to streamline cross-border payments.”
said Alex Holmes, MoneyGram Chairman and CEO.
MoneyGram said that it was the first money transfer firm to use blockchain technology as part of its foreign exchange trading and has since made several innovative partnerships to offer broad consumer access to digital currencies. The effect of this latest collaboration is expected to grow as more wallets and firms join the Stellar network.
Jeremy Allaire, Co-founder and CEO of Circle, said "The launch of this partnership speaks to the power of digital currencies like USDC to create fast, secure, and seamless settlement for the digital economy,"
Founded in 2014, a non-profit organization, Stellar Development Foundation helps maintain Stellar's codebase and supports the technical and business communities building on the network. It also serves as a voice to regulators and institutions. The Foundation says that its seeks to develop equitable access to the global financial system, utilizing the Stellar network to unlock the world's economic potential via blockchain technology.